Newsletter - Lean Manufacturing


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Newsletter - Lean Manufacturing

  1. 1. October 2009. . . . . . . . . . . . . . . . . . . . . . . . 1Excellence ThroughKnowledgeOctober 2009Inside this Issue1Lean Manufacturing – AnOverview2The Five PrimaryElements Of Lean3The “8 Wastes”4Total ProductiveManufacturing – AnOverview5Lean-Based Training onthe Shop FloorC. H. Paul Consulting Inc.7370 Ventnor DriveTobyhanna, PA 18466570-216-4571WeWLeanManufacturing –An OverviewWhat is Lean or Lean Manufacturing?To begin, it is probably appropriate todiscuss what Lean is not.Lean is not this month’s quick fix fordoing more with less and doing it in halfthe time – If you are not committed…don’t bother getting started becauseyou will do more damage to theorganization than if you did nothing atall!If your boss comes to you and says…“Take a look at this LeanManufacturing thing and see if it issomething we can apply quickly toachieve some improvements for the nextquarter.” .…run don’t walk to thenearest exit and don’t stop running untilyou are sure you are safe! In allseriousness, there is always “lowhanging fruit” that will net significantimprovements to the bottom-line veryquickly. Lean however is notsomething you undertake to realizeshort-term improvements – it is on theother hand, a new way of thinking aboutyour business and a new way ofexecuting business activities. SomeLean practitioners have indicated thatsome Lean change efforts can take aslong as two years to accomplish.Lean Manufacturing is aimed at theelimination of waste in every facet ofproduction including customer relations,product design, supplier networks,transportation, and factory management.Its goal is to incorporate less humaneffort, maintain less inventory, expendless time to develop products, andutilize less space. All of this in order tobecome highly responsive to customerdemand while producing top qualityproducts in the most efficient andeconomical manner possible.The good news is that Lean works andwill net you tremendous improvementsall along your supply chain. The badnews is that once you turn down theLean road you will never ever be done.Lean is a living, breathing organism thatyou must constantly nurture in order tosustain and build upon yourimprovements. Get lazy for one minuteand you will find that the organizationwill slip back into its old habits andyour improvements will erode.It has been said that Lean is a journeyyou set out upon with a destination younever quite reach...NewsletterSatisfy the needs of the customer by performing only those actionsand activities that add value as perceived by the customer!
  2. 2. October 20092 . . . . . . . . . . . . . . . . . . . . . . . .Lean evolved from TQM and JIT bothof which had the objective of“delighting the customer through acontinuous stream of value addingactivities…” while at the same time“….adhering to the highest standards ofbusiness performance as measured bythe customer.”Lean looks at the entire value streamfrom start to finish identifying bothValue and Waste with the goal toeliminate the Waste and optimize theValue.As you begin to delve into the world ofLean, you will probably hear the termLean Enterprise. The Lean Enterpriseis comprised essentially of the keygroups of individuals and functionsinside and outside of your company(such as suppliers, service providers, 3rdparty manufacturers, customers, etc.)that work in synergy to design, market,sell, develop, produce, store, move, anddeliver your products to your customers.Lean is not something that you do justwithin your organization. When acompany goes Lean, everybody must goLean for the process to work well. Leaninvolves everyone!The focus of everyone in the LeanEnterprise is to: Identify each input and output thatprovides Value to the ultimatecustomer Eliminate from the value streamall of the activities that do notprovide Value – cut the waste Build “perfection” into eachValue that is produced Structure and execute the actionsthat do create Value in an efficientcontinuous flow as “pulled” bythe customer.So….still you ask, “What the hell isLean?” As you have seen, Lean wasborn out of TQM and JIT and wasfurther refined and made famous in itsearly stages as the Toyota ProductionSystem. Lean is a new powerfulapproach to doing business that drawsupon and combines the techniques ofTQM, JIT, Kaizan, TPM, Six Sigma,Poka Yoke, SMED, and a variety ofother techniques to help you transformyour operation into a very flexible andefficient production entity that iscapable of surviving and competing inthe new century.Lean ProductionImplementationThere are essentially five phases toLean Implementation.Phase One is the Planning Phaseand requires from 1 to 6 months toaccomplish. During this phase aninitial assessment is performed toidentify the “As Is” or current stateof the business, the decision tomove forward into Lean is made,the corporate Lean PolicyStatement is prepared, goals andobjectives are established, keyteams are formed, the TrainingPlan is developed, and the LeanPolicy is communicated toeveryone in the organization.Phase Two is the Apply Phasetaking from 3 to 6 months toaccomplish where the focus is upondesigning the strategy andapproach for gaining control of theprocess. This phase’s activitiesinclude applying 5S, standardizingwork, quick changeover, visualcontrols, documenting standardizedprocedures, and improving thecompetency of the workforcethrough training.Phase Three is the DeployPhase taking from 2 to 12 monthsto accomplish and is basically theimplementation or deployment ofall Phase Two activities throughoutthe plant and the expansion ofthose activities for plantdeployment in Phase Four.Phase Four is the IntegratePhase, which takes from 2 to 4months to accomplish. This phaseis concerned with implementing allPhase Three activities throughoutthe organization and the planningand development of expanded Leantraining for all employees, linkingLean to Suppliers through theSupplier Development Program,and applying QFD.Phase Five is the Excel Phaseand is the final continuousimprovement phase of Lean thatessentially goes on forever! Duringthis phase, all Phase Four activitiesare implemented. Critically, thisphase is concerned with generatingnew ideas for the future andinvesting in R & D.
  3. 3. October 2009. . . . . . . . . . . . . . . . . . . . . . . . 3The Five PrimaryElements of LeanFive primary elements of LeanManufacturing form the foundation forthe process and define the key issuesthat must be addressed. These elementsinclude: Manufacturing Flow Organization Process Control Metrics LogisticsManufacturing FlowManufacturing Flow is concerned withthe assessment of your products andtheir associated process flows with theultimate goal of improving work flows,reducing cycle time, eliminating WIP,etc. Some of the techniques used whenaddressing this element include: Product/quantity analysis Process mapping Routing analysis Takt time Workload balancing One-piece flow Cell design guidelines Cell layout Kanban sizingOrganizationOrganization is concerned withidentifying and specifying people’sroles and functions, improvingcompetency and developing new skillsand methods through training, andcommunication.The areas addressed under Organizationinclude: Communication Planning Product-Focused Responsibility Leadership Development Operational Roles andResponsibilities Workforce Preparation –Training…Training…TrainingProcess ControlProcess Control is concerned withmonitoring, controlling, stabilizing, andpursuing ways to improve the process.Most production processes are not incontrol and are not performing at levelsnecessary to support a Leanenvironment. The seven importantactivities related to this Lean elementinclude: Single-minute exchange of dies(SMED) Total Productive Manufacturing Poka-Yoke (fail safe) 5S (Housekeeping) Visual controls Standardization Graphic Work InstructionsMetricsIf you can’t measure it, you can’tmanage it. Metrics is concerned withaddressing and creating visible, results-based performance measures, targetedimprovement, team rewards, andrecognition. Measures are looked atfrom many different directions toinclude: Process-Driven Measures DuPont Model (a company view) Output-Based Measures Goal Alignment Through PolicyDeployment Measurement Definition andUnderstandingLogisticsThis element provides definition foroperating rules and mechanisms forplanning and controlling the flow ofmaterial and includes: Planning and Control A, B, C Material Handling Service Cells Customer/Supplier Alignment Just-in-Time Cell Team Work Plan Level Loading Mix-Model Manufacturing Workable WorkThe 8 WastesEliminating Waste is one of thehallmarks of Lean Manufacturing.There are essentially eight categories ofwaste, seven of which are defined aspart of the Toyota Production System.These eight wastes include:Overproduction is producing morematerial than needed by the ultimatecustomer or producing material sooner,or faster than required by the nextprocess. Producing more than requiredis the most obvious form ofoverproduction. The excess materialmust be moved, counted, staged, stored,inspected, reworked, etc. Producingmaterial sooner than the next processhas the same result but only in the shortterm and results in materialaccumulating somewhere along the
  4. 4. October 20094 . . . . . . . . . . . . . . . . . . . . . . . .production stream. Excess materialresulting from overproduction lengthenscycle and lead times and increasesproduction costs. In the Toyota system,market demand or actual orders driveproduction requirements.Excess Inventory is inventory oftenused to insulate the factory fromproblems – long setup operations, poorequipment maintenance, unreliablesuppliers, and poor production control.The capital tied up in excess inventorycan be considerable, but the “cost” alsoincludes the wasted effort of moving,tracking, storing, and otherwisemanaging the unneeded material.Conveyance is the excessive movementof material to include its transportation,stacking, and staging.Overprocessing is doing more to thefinal product than is minimally requiredto transform it into an acceptableproduct.Unnecessary Human Motion ofworkers (due to the inappropriatelocation of tools and parts, equipment,etc.) is a waste of time and energy andis tiring, stressful, and disrespectful toworkers.Waiting Time is the interruption of theproduction process for a variety ofreasons -- production equipment orprocesses that have differing operatingrates (operations should be “leveled” or“balanced”) raw materials or WIP notavailable when needed, and equipmentdowntime (equipment failure,equipment running at less thanoptimum, excessive changeover orsetup, etc.)Defects – making defective product ispure waste – time to detect, time to fix,time to sort, and the time it takes toproduce the defective product in thefirst place. In addition, defects wastematerial and worker effort.Human Potential is the eighth waste,the waste of unrealized human potential.This waste disregards the mostsignificant asset of any plant – thecumulative wealth of employeeexperience and creativity. Humanbeings have the ability to solveproblems, create new products, andimprove processes if properly tappedand channeled.Total ProductiveManufacturingProductivity” is one of the most usedand abused words in our languagetoday. Basically, productive work isdefined as the Output and Quality ofgoods and services of the individualworker.If productivity occurs when a workerperforms a job task efficiently andeffectively, then productivity ceaseswhen the performance of that job task isinterrupted. These interruptions maytake many forms within the industrialwork environment. A worker forexample, may take an excessive amountof time diagnosing a machine problemor a machine itself may breakdownbecause of a lack of planned preventivemaintenance. A machine mayintermittently start and stop throughoutthe shift because of dirty or blockedsensors. A newly hired worker mayinadvertently cause downtime becausehe or she simply did not know what todo or what was expected. Also, amachine operator may cause downtimebecause he or she did not react to aproblem properly. These are only someof the causes of productivityinterruptions within the workplace.Along with improving overall qualityand waste levels, these items representsignificant productivity improvementopportunities. These and otherinterruptions can be classified under thecategory of -- Avoidable Delays.Simply stated, the avoidable delayreduces the capacity of worker outputand significantly affects product quality.The impact of a single avoidable delayaffects the output of not one but manyworkers. Delays in production touchupon each worker dependent upon themanufacturing process for his/her dailywork activities. Specifically, when amachine fails to function as it wasdesigned, the productive output of themachine itself is lost, costs are incurred,waste or scrap is produced, andoperators, mechanics, technicians andeven other production lines are idled.Productive work cannot occur ifequipment does not function asdesigned, equipment is not available foroperation during all scheduled periodsof production, workers are notcompetent to perform their operationand maintenance tasks, chronic andsporadic problems are not correctedproperly, maintenance is not scheduledand performed when required, andworkers are not intimately involved inthe process of maintaining, improving,and designing production equipment.Total Productive Manufacturing orTPM is the answer to these problems.TPM is the marriage betweenmaintenance and production – twogroups that work together everyday butwho in the past have had dissimilar oreven conflicting goals and objectives.TPM is an approach to running thefactory’s equipment that empowersworkers at all levels with theresponsibility of maximizing equipmentoperation, effectiveness, and
  5. 5. October 2009. . . . . . . . . . . . . . . . . . . . . . . . 5maintainability in order to eliminatebreakdowns, promote autonomousoperator maintenance, and improveoverall product quality. The term“Workers” in the context that we haveused it here includes productionoperators, maintenance mechanics,engineers, and production andmaintenance supervision all workingtogether to achieve a common goal.TPM utilizes manufacturing personnelas the front line to improve andmaintain equipment. Operators writework orders, monitor their ownequipment, and are consulted beforemaintenance shutdown for input to theschedule. Maintenance personnel trainoperators, receive input aboutequipment operation, discuss datagenerated by condition-basedmonitoring to ensure a thorough andeffective maintenance operation isperformed.American plant management commonlyconfuses reporting maintenance withdoing maintenance. Equipment mustoperate consistently in terms ofmaintaining precision and utilization ifquality products are to be produced withno waste and rework. Soundmaintenance performance and thepursuit of manufacturing excellence areessential prerequisites to World-ClassManufacturing and Lean operations.TPM allows the organization to gaincontrol of equipment operation and howproducts are produced. TPM is aclosed-end process that feedsinformation learned about equipmentmaintainability and operation back todesign engineering to prevent thoseproblems from recurring.TPM requires several ingredients towork effectively.....Total EmployeeInvolvement in the maintenanceprocess.....Standardized methods ofdoing work.....Disciplined EquipmentInspection and Preventive MaintenancePerformance.....Sound EquipmentKnowledge and OperatingHistories.....and a DiagnosticKnowledge Base.Nine Categories of Equipment LossAs companies move toward becoming aLean Enterprise with work cells andflow manufacturing, a single breakdownhas the impact of stopping the entireprocess and affects the entire system’sperformance …immediately! In a LeanEnterprise, operations cannot be movedto another machine and there is noinventory to keep other machines in thecell running. This forces the operationto deal with the breakdown immediatelyand put measures in place to prevent areoccurrence.TPM is about by gaining control overthe most insidious problems plaguingthe manufacturing process day-by-dayand minute-by minute, which represent30 to 50% of the maintenance costs onany shop floor. These problemsinclude: Sporadic equipment failure –random equipment breakdownwhich requires repair, waiting formaintenance and parts and endswhen equipment is ready to run Chronic equipment failure –recurring equipment breakdownwhich requires repair, waiting formaintenance and parts and endswhen equipment is ready to run Set-up and adjustment time – thetime spent changing over to thenext product, process or recipeand includes the time from the lastgood product produced to the firstgood piece of the next productproduced Idling and minor stoppages –equipment stoppages that can beresolved by the operator in under6 minutes Speed Loss – the differencebetween the optimal running speedand the current running speed Defects in the process – the timethe process is stopped to correctnon-compliance issues, inspectingand accepting non-compliantproduct produced Yield loss during start-up –allnon-productive activity whichincludes the time from the lastgood piece made from the priorproduction run to the first goodpiece of the next product runTPM Teams trained in the process andcompetent to perform their individualjobs meet on a regular basis to addressequipment problems. The solutions tothese problems take the form of changesin the way work is accomplished --inspections to identify areas of potentialproblems, engineeringrecommendations for permanentproblem solutions, etc. Improvingworker competence and maintenanceplanning and execution are alsoessential keys to this process.
  6. 6. October 20096 . . . . . . . . . . . . . . . . . . . . . . . .TPM ObjectivesTPM is not solely about maintenance.It incorporates a customer-focusedapproach aimed at satisfying the needsof both the customer and the company.In essence, TPM has four mainobjectives: To fundamentally andpermanently change the culture To optimize production processesand equipment effectiveness The involvement of all employeesin the process Implementing a proactive processto operations and equipmentmaintenanceThe key to the success of TPM is tomake TPM a sustainable tool thatidentifies and creates the environmentfor optimal rather than acceptableequipment operating conditions whereactions are focused on understandingmachine principles and mechanisms,taking all losses seriously, measuringperformance accurately and trackingand managing results.TPM ToolsSome of the tools that are generated bya TPM implementation include: Established focused and trainedTPM work teams Equipment inspection routines Standardized operatingprocedures Standardized maintenanceprocedures Standardized electricalprocedures Standardized cleaning,lubrication, and bolt tighteningprocedures User-based maintenance planningand reporting system(s) Expert systems for diagnostics andtroubleshooting Machine/process specifictechnical training systemsTPM ResultsThe results realized from an effectivelyimplemented TPM approach to doingbusiness are dramatic.30% increase in Productivity!70% reduction in Defects/Rework!30% reduction in Operating Costs!30% increase in Output!80% reduction in Breakdowns!While people represent the onlycompetitive edge available to Americanmanufacturing today.... Technology isthe tool that people use to facilitate thatcompetition. Total ProductiveMaintenance provides the basis bywhich an organization can better utilizethe strengths and expertise of its entireworkforce to enhance Performance -Productivity - Profits.Lean-BasedTraining on theShop FloorIt has been said that competence is theprerequisite to competition. That iscertainly true but even morefundamental than that, competence isthe success factor for any initiative forwhich you have an expectation ofsuccess. This is particularly true ofLean and those initiatives that aretargeted for the shop floor.Up until a few short years ago, one ofthe most valuable of all productionresources was routinely neglected -Human Capital. Well designed anddeveloped technical training on the shopfloor, is essential to meetingcompetitive challenges. To be effective,technical training must be specific toeach worker’s job and the equipmentwith which he/she works.Unfortunately, technical trainingprograms for technical workers in manycompanies ... do not exist!United States Air force studies haveshow us that within their ownworkforce, one out of three times whena worker diagnoses a problem or repairsa malfunction.....a mistake is made!Poor Vendor TrainingOperations managers (having neverbeen taught in business or engineeringschool of the importance and principlesof adult learning) generally do notunderstand what is necessary togenerate worker competence. As aresult, they usually do not requireequipment suppliers to produce trainingthat works. Indeed, most managers areunable to distinguish between detailedtask-based training and the illusion oftraining, which consists of a cursorytechnical overview of the product orsystem.Most equipment vendors provideminimal training, or training that issubstandard.Most vendors sell in a commodityenvironment (selling mainly on price oracquisition cost alone). If the quality oftraining were to be improved, theybelieve, costs would have to increase.Nothing is further from the truth!
  7. 7. October 2009. . . . . . . . . . . . . . . . . . . . . . . . 7The historically poor approach totraining by equipment vendors breedsincompetence on the shop floor, resultsin significant start-up problems, poorequipment utilization, high defect rates,and many other major manufacturingproblems that influence productivityand profit.Non-Functional Equipment ManualsAs with vendor training, most manualsare written in “technobabble” from thepoint of view of design engineers. Theycontain little necessary information,such as detailed troubleshooting,complete detailed procedures forcompleting essential maintenance andrepair of the equipment delivered, andspecific information concerning howequipment functions, are controlled, andinterrelate with other essentialequipment. These technical manualsare rarely sufficient to support theoperation. They simply......don’t do thejob.Poorly designed vendor documentationresults in long frustrating hours of trial-and-error diagnostics and repair, anddramatic waste and inefficiencies.Exact job task procedures required tooperate and maintain complex state-of-the-art equipment and controls are oftenleft to inexperienced personnel who lackthe training to develop these essentialmaterials.The SolutionThe solution consists of developingtraining that supports the performanceof actual jobs on actual equipmentdesigned to Optimal not just Acceptableoperating parameters.Generic training such as “Introductionto Hydraulics and Pneumatics,” doesnot produce the transference of job-specific skills to actual situations that iscritical to sustained efficient operations.Workers, particularly in a LeanEnterprise, must be competent tooperate and maintain their equipment,their processes, and their systems notsome abstract academic representationof a simulated system or process.The four training tools that are requiredfor worker competence in the workplaceinclude Standardization, TechnicalDocumentation, Performance-BasedTechnical Training, and Certification.Standardization – standardize everycritical procedure and operation to theoptimal level and require that allhuman-machine interaction be executedprecisely to that standardized method.Technical Documentation – documentcompletely every standardizedprocedure in a highly graphic formatand make it readily available for use byall workers on the shop floor to preventhit or miss guesswork as to how theprocedure must be performed.Job Training – develop comprehensiveshop floor training that trains allworkers to the standardized proceduresand protocols that have been developed.Certification – certify all workers ascompetent to perform their jobs basedupon objective observable performancetests conducted using the standardizedprocedures that have been developed asthe acceptable Go-No Go criteria ofperformance.Technical DocumentationThe technical documentation that isprepared that documents allstandardized methods of doing work isthe heart of Job Training. Technicaldocumentation should be produced asJob Performance Aids (JPA).Without technical documentation,technical training and process control isdifficult if not impossible to accomplishsince the details required to operate andmaintain the factory simply cannot bemastered through rote memory. The useof JPA’s enhances and elevates theability and capability of the worker tothat of expert performer - producingvirtually flawless performance.Job performance aids (JPAs) arediagrams, checklists, procedures, etc.that document and standardize essentialjob procedures (troubleshootingproblems, start-up and shut down ofequipment, remove, replace, adjust,repair etc.). These JPAs are essential tothe trainees quick internalization oflearned skills and critical jobknowledge.Job performance aids in the broadersense can be considered user support"tools", which incorporate the decision-making and procedural thoughtprocesses of an expert user, and placethose skills in the hands of thenovice/inexperienced worker. JPAsdetail all of the essential job tasks andactivities performed by a worker toinclude troubleshooting.
  8. 8. October 20098 . . . . . . . . . . . . . . . . . . . . . . . .JPAs are designed to be used "on-the-job" by the performer as a guide to theperformance of a given task. The use ofJPAs in training accelerates trainingwell beyond the standardized trainingtimes expected when more traditionaltraining methods are used.The performance aid provides a bridgebetween training and work that ismissing from most learning experiences.The role of the job performance aid is totrigger the memory concerning whatwas taught during the training process.Typical Training ComponentsEvery Lean-Based shop floor trainingpackage should include: A detailed training curriculum foreach job function addressed keyed tospecific job tasks Computer-based media to presentbasic prerequisite job knowledge Job Performance Aids for eachcritical and frequent job task Training Administrator Instructions Trained Peer Trainer Certification/Performance Tests foreach job addressedSPECIFIC LEAN TRAINING TOPICSIn addition to all of the technical training that must be accomplishedto initiate change in processes and methods as part of the journeytoward Lean, the workforce must be educated about Lean. Overview of the Lean Enterprise and OrganizationalStructure The Lean Operating Environment Team Concepts – Team Based Management, Leadership,Process Teams and Teamwork Team Project Management, Project Planning, and the ProjectManagement Office Roles and Responsibilities Process Measures, Metrics, and Business Scorecards Methods and Tools Supporting Lean ManagementView us on the web at for more information.